Aktsiaselts Tallink Grupp - NASDAQ OMX Baltic

Protection and indemnity insurance is typically renewed annually, the next renewal date being February 20,
2006. The limit of liability per incident under the protection and indemnity insurance is USD 4.25 billion, which
is based on Insurance Club Statutes and Rules and determined by the International Group of P&I Clubs
Reinsurance Arrangements.
We believe that our insurance policies correspond to standard industry practices and meet the requirements
of the covenants of our loan agreements.
As a general rule, all rights and claims of ship-owning subsidiaries that arise from insurance agreements
entered into by them in respect of the vessels that have been mortgaged as a security for loans taken by Tallink
and/or such ship-owning subsidiaries have been assigned to the respective lenders. Since all of our vessels have
been bareboat-chartered to Tallink or Hansatee Cargo, their respective rights and claims under respective
insurance agreements have also been assigned to the lenders. In some cases, loan agreements that are secured by
such mortgage require that rights and claims of all assured parties under insurance contracts be assigned to the
respective lender.
All motor vehicles used by Tallink are covered by the mandatory third party liability insurance.
Employees and Labor Relations
The average number of our employees by type of activity for each of the financial years ended August 31,
2003, 2004 and 2005 is set forth in the table below:
Financial year ended August 31,
2003 2004 2005
Onshorestaff....................................................... 340 561 753
Onboard staff ...................................................... 1,581 1,810 1,957
Total ............................................................. 1,921 2,371 2,710
The average number of our employees by country of employment for each of the financial years ended
August 31, 2003, 2004 and 2005 is set forth in the table below:
Financial year ended August 31,
2003 2004 2005
Estonia ........................................................... 1,711 2,150 2,461
Finland ........................................................... 136 140 155
Sweden ........................................................... 74 79 88
Russia ............................................................ 0 3 6
Total ............................................................. 1,921 2,372 2,710
On August 30, 2005, we renewed our agreement with the Estonian Seamen’s Independent Union (Eesti
Meremeeste Sõltumatu Ametiühing) regarding salary levels of our onboard staff. The agreement has a term of
three years, which commenced on September 1, 2005. The annual increase in employees’ salaries under the
agreement is five percent. Distribution of salary funds amongst work positions has been agreed in a supplemental
agreement between Tallink, the Estonian Seamen’s Independent Union and our subsidiaries Hansaliin and HT
Laevateenindus.
Legal Proceedings
Neither Tallink nor any of our subsidiaries have during the 12 months preceding the date of this offering
memorandum been or are currently involved in any legal or arbitral proceedings or material disputes which may
have or have had a material adverse effect on our business, results of operations or financial condition. Our
management is not aware of any facts or circumstances that could reasonably be expected to lead to any material
claims being made against us or any of our subsidiaries in the foreseeable future.
On November 19, 2004, we filed a claim with the European Commission regarding the fees charged by the
Port of Tallinn, which is pending. We have also filed claims against the Maritime Administration and the
Ministry of Economic Affairs and Communications regarding the lighthouse and ice-breaking fees charged to
them. These matters are also pending.
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